HCL Technologies Q4 Results: Revenue Dips Amid Signs Of Slowdown

HCL Technologies Ltd.'s net profit declined in the March quarter as revenue from engineering and R&D services as well as the software division faltered. However, the company posted numbers in line with analyst estimates.

The IT bellwether won 13 large deals, including 10 in services and three in software verticals. Of this, six came from new clients.

"Our net new bookings for FY23 grew 6.6%. Our pipeline is near an all-time high, which reflects our differentiated business mix and strong client demand for our offerings," said C Vijayakumar, chief executive officer and managing director at HCL Tech.

The number of clients in the over $100 million basket stood at 16, as compared with 17 as of December 2022. Top five clients contribute 11.6% to the company's revenue as of March, as against 10.3% in December 2022.

During the March quarter of fiscal 2023, HCL added 4,480 freshers. Net employee addition during the period stood at 3,674 individuals, higher than 2,945 seen three months prior. Attrition rate moderated to 19.5% during the period under review from 21.7% in the previous quarter.

The total headcount at the company as of March 31, 2023, stood at 2,25,944, as against 2,22,270 as of Dec. 31, 2022.

"All these set us well in FY24 for healthy revenue growth in the 6-8% range, with operating margin in 18-19% range," Vijayakumar said.

HCL Technologies has given a guidance of 6-8% for revenue growth in constant currency terms during fiscal 2024.

The IT major sees services revenue growth in the range of 6.5-8.5% in constant currency terms in the current fiscal. It expects EBIT margin to be between 18-19% during this period.